Titan share price today: Titan Company share price declined almost 2 per cent in morning trade on BSE on Monday, October 9, following the company’s September quarter (Q2FY24) business updates.

Titan Company share price opened at ₹3,308.95 against the previous close of ₹3,311.15 and slipped 1.90 per cent to the ₹3,250 mark in the morning trade on BSE.

Titan Company share price has gained about 22 per cent in the last one year, outperforming the equity benchmark Sensex which has gained about 13 per cent in the same period.

Titan Q2 business update

In an exchange filing on Friday, October 6, Titan said its revenue grew 20 per cent year-on-year (YoY) in Q2FY24. Besides, it opened a total of 81 stores during the quarter, taking the group’s retail presence to 2,859 stores.

As per the exchange filing, Titan’s jewellery segment revenue rose 19 per cent YoY in Q2FY24 while it opened 39 stores for the segment in the quarter under review.

“Jewellery division’s nearly 19 per cent YoY revenue growth was led by about 20 per cent growth in the domestic business and lower primary outgo from India to the International entities (driven by periodic inventory realignment),” Titan said.

The ‘Watches & Wearables’ segment saw a 32 per cent YoY growth, the ‘EyeCare’ segment grew 12 per cent YoY and the segment of ‘Emerging Businesses’ rose 29 per cent YoY.

“In Emerging Businesses, fragrances and fashion accessories sales grew about 4 per cent YoY. In sub-segments, fragrances

grew by nearly 14 per cent YoY whereas fashion accessories witnessed a de-growth of nearly 12 per cent YoY. Taneira’s sales grew by about 64 per cent YoY and the brand opened four new stores during the quarter,” said Titan.

CaratLane, in which Titan holds nearly 98.28 per cent stake on a fully diluted basis, also saw healthy growth in revenue during the quarter.

“CaratLane sales grew by nearly 45 per cent YoY led by equal growth in studded sales, new collections, gifting campaigns and

‘old gold’ exchange program initiatives during the quarter. Business added 13 new domestic stores in this period expanding the network presence to 246 stores in 97 cities across India,” Titan said in its exchange filing.

Titan in August acquired an additional 27.18 per cent of equity shares in its subsidiary CaratLane for ₹4,621 crore.

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Brokerages remain positive about Titan

Brokerage firms expressed their positive views on Titan stock after the company’s Q2 business update.

Motilal Oswal Financial Services maintained a buy call on the stock with a target price of ₹3,795, implying a 15 per cent upside in the stock price as it expects Titan to record double-digit growth across its key businesses.

Motilal Oswal believes Titan’s standalone revenue may grow by 20 per cent YoY, driven by double-digit growth in the number of buyers and ticket sizes.

“Earnings growth visibility for Titan remains strong. It has compounded earnings by about 20 per cent for an elongated period. In the Jewelry industry, which is becoming an organised industry at a rapid pace, Titan is clearly at the vanguard in terms of growth among organised players,” Motilal Oswal said.

“Its runway for growth is long, with a market share of nearly 7 per cent. Unlike other high-growth categories, the competitive intensity from organised and unorganised peers in jewellery is considerably weaker. The structural investment case for Titan is intact,” said Motilal Oswal.

Among the global brokerage firms, Morgan Stanley maintained its ‘overweight’ view on the stock with a target price of ₹3,190, reported CNBC-TV18.

“Q2 trends surprised positively in terms of delivering 20 per cent YoY growth, four-year CAGR for the jewellery segment stood at 25 per cent, which was significantly higher versus historical trends,” CNBC-TV18 reported Morgan Stanley saying so about Titan.

Titan share price traded 1.32 per cent lower at ₹3,267.50 around 11:35 am on BSE.

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